Basics of Human Resource Management Module 5

Basics of Human Resource Management Module 5

• The module covers the basics of human resource management.
• The presenter is Regina Rastbichler, MA.
• The presentation includes a diagram of the HRM landscape, highlighting key areas like HR strategy & planning, talent management & development, competency management, diversity, compensation, and benefits, HR organization issues, HR-IT, and social media.

The HRM Landscape

• The HRM landscape diagram is a triangular structure with "HR-Strategy & Planning," "Talent Mgmt & Development," and "Competency Mgmt" at the top.
• Other elements are compensation and benefits, social media, HR-IT, HR control, and diversity.
• The diagram shows relationships among these elements, implying they interrelate.
• The presentation introduces a concept of the employee experience.

Main Questions

• How can companies ensure that they have successors ready for key positions at any time?
• Which methods and criteria are typically used to identify talent inside companies?
• What are required conditions for employees to leverage their talent as part of their long-term career?

Talent Management

• Talent management encompasses all HR processes for attracting, developing, motivating, and retaining high-performing employees.
• This is a broad HR function.

Why Do Organizations Need Talent Development?

• Organizations need talent development to compete effectively in complex and dynamic environments.
• Development is crucial for growth and sustainable development.
• It helps them develop tomorrow's leaders and experts, maximizing employee performance and creating a competitive edge.
• Engaging employees and reducing high turnover rates is also a key benefit.
• Talent development saves money by reducing the costs of hiring new staff regularly.

Demand, Supply, and Context Factors for Talent Management

• External context: Competition, global markets, government policies, technological developments, and employment levels drive talent management.
• Workforce (supply): Demographics, workforce diversity, perceptions of leaders, and work-life balance greatly influence talent management.
• Employers: Competitive advantage, workforce flexibility/agility, competition for labor (employer of choice), and skills shortages are crucial to understanding talent management.
• Organizational context: Business strategy, employee engagement, recruitment and retention, succession planning, and line management capability are essential organizational elements.

What is a "Talent"?

• Talent is defined as individuals with high potential within a company, potentially moving on to the next development step.
• Key characteristics include specific and strategically relevant competencies.
• Relevant criteria include performance and willingness to take responsibility.
• Individuals with a high willingness to shift to different jobs or positions are considered important.

Conventional (Exclusive) Approach

• This approach focuses on a small group of high-potential employees (A-Performers, High Potentials).
• These individuals would be selected for promotion to key functions.

Reasons for Conventional/Exclusive Approach

• The assumption is that high potentials are more productive and contributing more to the company.
• It assists in using limited financial resources efficiently.
• It focuses on top talents to staff key functions.

Integrated Approach

• The integrated approach views all employees as potentially talented.
• The goal is to develop talent in every employee.

Talent Management Definition in Today's Business Context

• Talent management applies to all employees, developing capabilities needed to meet future challenges, enabling them to reach their full potential.

Integrated TM-Model

• This model is a visual representation of the integrated approach.
• It shows the relationships between input, system, HR management, and output.

How Talent Management Meets Business Needs

• Addresses employee engagement, risk management, and future-focused strategies.

The Big Ideas of "People Databank"

• Understand people's goals, capabilities, and current development.
• Leverage technology to share information and facilitate collaboration among employees across departments.
• Data should be shared and stored securely with the relevant data security rules and regulations.
• Software and media tools can connect employees, enhancing ideas, learning, and collaboration across organizations.

The Big Ideas of "Shared Management"

• Clarify managers' roles regarding engagement, providing feedback, supporting development opportunities, and communicating/assessing performance standards.
• HR's role is to support managers, helping them deal with high and low performers.

Starting Point: "Strategy"

• This section focuses on how talent management should align with the company strategy, providing a template and framework.
• It's intended to show how talent management will support strategic initiatives.

Relevance for Key-/Bottleneck Functions Through TM

• The strategies are difficult to fill from outside roles, but the company can build an internal talent pool and develop existing staff, making filling roles easier.

Types of TM Within the HR Playing Field

• Companies are responsible for developing the most talented employees.
• Central planning and control are important for planning activities and roles in organizations.

Reaching Business Objectives Through TM

• Evaluation of businesses strategies and defining the future in terms of competency and strategies.
• Planning of TMS activities and roles, including qualitative and quantitative workforce planning.
• Employee identification and selection (internal/external), Development planning based on future gaps, and role clarification.
• Establishing success criteria and measures, conducting evaluation, and alignment with business strategy are all important.

Analyzing the Current Situation: SWOT

• The Analysis of the current situation helps provide an understanding of the business environment; it helps identify internal and external factors, including societal factors, labor market trends, education structure, competition, and regional factors.

Example SWOT Analysis - Business Goal: Bus. Expansion And Staff New Positions Internal Strengths & Weaknesses & External Opportunities & Threats

• This section evaluates factors relevant to expansion and staffing, including internal strengths (attractiveness, competency model), weaknesses (high external hiring costs), opportunities (younger academics), and threats (demographic change, few applicants).

Example: Talent Implications of Business Strategy

• Business strategy considerations, including current business, growth, and new business initiatives determine required talent.
• Implication summaries for talent grid creation are important factors for determining organizational talent needs.

Evaluating TM Activities

• Assessing input (processes/instruments, employee reaction) and output (did processes/instruments lead to desired results?) to determine if the initiatives were helpful.

Balanced Scorecard - Example Succession Planning

• Using a Balanced Scorecard to track retention, talent management system, development, and succession objectives, including targeting, identifying key talent, and placing them in needed roles.

Examples: Success Criteria and Indicators

• Criteria and indicators are designed to measure success in talent management, including acceptance of instruments, higher employee performance, and succession planning for key positions.
• This section provides specific criteria that can be used for evaluating success in talent management.

Competency Management

• The presentation covers competency management.

Integrated TM-Model

• This model shows how strategic goals form the basis of employee activities that drive the success of the organization and talent.

Example: ABB Leadership Competency Model

• The competencies are categorized and interconnected, highlighting the holistic nature of leadership and talent development.

Competency Ice Berg Model

• This model classifies competencies as visible skills and hidden characteristics like values, motives, and personality traits.

Competency Approaches (Prof. John Erpenbeck)

• Competency definition encompasses knowledge, tools, motivation, values, and norms, explaining abilities for self-organization and problem-solving.

Competency Definition (Rosensttiel & Erpenbeck)

• Defines competency through know-how, skills, and tools, self-organisation, and ability to act with creativity and professionalism.

4 Basic Competency Dimensions (Erpenbeck & Heyse)

• This framework classifies personal competencies (reflexivity, self-evaluation), action competencies (flexibility, creativity), and professional competencies (objectivity, problem-solving ability).
• Cross-sectional competencies are important for connecting these skillsets across different functions in the workforce.

Code X- Competency Dictionary

• This dictionary explains different types of personal and professional competencies for decision-making process and activities.

Level of Competency Frameworks

• The system for structuring competencies by levels of core, job family, job-specific, and leadership competencies is presented.

Usage of Competency Models in HR

• The diagram shows how competencies are useful in different areas of human resource management, such as recruitment, development, potential assessments, and talent review processes and succession planning.

Talent Assessment/Talent Review

• Talent review involves assessing and evaluating an individual’s talents and abilities and aligning with the organization’s overall strategy and future leadership needs.

Defining Potential

• "Definition of Potential" and criteria needed, along with example of how this is defined, are outlined in this section.

The 9-Box Grid

• This is a common tool for discussing employee strengths and development needs in teams where executives review workforce composition.

Example Performance Potential Grid

• This grid is used to assess employee performance and potential, including categorizations and action plans.

Example 4-Box Matrix

• This matrix is used to categorize employees based on performance and potential. High-performing employees with high potential are "Stars" while others are "Workhorses," "Dead Wood", or "Wild Cats.".

Talent Review Structures

• The model provides structure for talent reviews, such as leadership teams and HR business partners involved in different levels of talent identification (high potential employees are at the bottom tier of the hierarchy).

Potential Objectives for Talent Reviews

• This section outlines objectives for talent reviews.

Benefits of Team Review Sessions

• This review of performance and potential helps ensure consistency, provide fair validation of judgments and feedback, clarifies misunderstandings, and encourages employee feedback and development ideas.

Developing a Succession Plan

• This section focuses on developing a succession plan: identifying roles, matching people with plans, managing and monitoring performance, facilitating reviews, and promoting high-potential employees..